PRESS RELEASE: August 1, 2006

J. Ray McDermott Awarded Offshore Project for Qatargas 3 and Qatargas 4

J. Ray McDermott Eastern Hemisphere Ltd., a subsidiary of J. Ray McDermott, S.A., was recently awarded an engineering, procurement, construction, and installation (EPCI) contract for three wellhead topsides bound for Qatar's North field, for Qatargas 3 and Qatargas 4 offshore projects.

"It's an honor for us to be selected by the Qatargas 3 and 4 ventures for this project, which follows the award of the jacket fabrication work earlier this year," said Hafez Aghili, senior vice president and general manager, Middle East and India. "There is significant potential for oil and gas field development in Qatar and every project award strengthens our experience and market position in the region."

J. Ray will design, purchase materials, construct, transport, install, hook-up, and mechanically complete three wellhead decks, WHP7, WHP8 and WHP9, each weighing approximately 2,100MT. Engineering and procurement has just commenced and construction will commence by April 2007 at J. Ray's Jebel Ali fabrication facility. All three well head decks will be completed by the last quarter of 2008.

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For more information, please contact:

Louise Denly
Director, Public Relations
J. Ray McDermott, Inc.
Houston, TX
(281) 870-5000
E-Mail:ldenly@mcdermott.com
www.mcdermott.com